Whatever merits one may ascribe to the recently enacted Medicarelaw, it has aggravated, not controlled, rapidly rising Medicarecosts. Its major feature is a massive entitlement expansion, but italso embodies some bad health care policy: There is no need for thefederal government to displace existing drug coverage, pre-empt newprivate-sector options, or accelerate the loss of employer-baseddrug coverage.
The Medicare conference agreement fails the two criticalrequirements of a responsible drug benefit program for the nation'sseniors. The original idea underlying this legislation wasnever just about adding drug coverage to Medicare. It wasabout doing so in a way that would not lead to huge additionalliabilities to future generations, and in a way that would reformthe program so that it could respond to the changing needs of theelderly and disabled. But the agreement will not leadto that.
President Bush's health care agenda would increase public andprivate coverage for millions of Americans. The outlined healthpolicy agenda introduces key changes in the conventional financingand delivery of health care. Chief among the proposals are healthcare tax credits for lower-income individuals and families and newmarket-based insurance reforms to enable Americans to purchaseprivate health coverage.